finance
In September 2022, India achieved a significant milestone with its monthly mobile phone exports exceeding $1 billion for the first time. This remarkable achievement reflects a year-on-year growth of over 200%.
This data indicates that mobile phone exports have surged by approximately 2.5 times compared to the same period last year.
The impressive growth is largely attributed to the Government's Production-Linked Incentive (PLI) scheme, which has attracted participation from major manufacturers such as Foxconn, Wistron, Pegatron for Apple phones, as well as Samsung.
According to projections from the India Cellular and Electronics Association (ICEA) for FY 2022-23, India is set to export 22% of its mobile phone production. This marks a substantial increase from a mere 1% exported in FY 2016-17, representing a 22-fold jump over six years.
The ongoing shift by major manufacturing companies towards locations outside of China is likely to bolster India’s growth trajectory, with aspirations to reach mobile phone exports of $60 billion by FY 2025-26.
Mobile phones, supported by the PLI scheme, have emerged as the largest contributors to the country's electronics export sector. With companies like Apple and Samsung ramping up their export efforts, Indian-made devices are now being sent to various markets, including the United Kingdom, the Netherlands, Austria, and Italy. This marks a shift from previous export destinations which primarily included the Middle East, Africa, and South Africa.
Over the five-year duration of the PLI scheme, the government anticipates an incremental production value of ₹10.5 lakh crore and exports worth ₹6.5 lakh crore, with the potential for the creation of approximately 800,000 direct and indirect jobs. As projected by the ICEA, mobile phones could eventually represent 45-50% of all electronics exports, underscoring their significance in the overall export landscape.
India's mobile phone export sector is experiencing unprecedented growth, driven by strategic government initiatives and shifting global manufacturing dynamics. This momentum not only enhances India’s position in the global electronics market but also fosters economic development through job creation and increased production capabilities.